Demand for Mobile Handsets to Drive Growth at IQE

Dr Drew Nelson, IQE President and CEO, said the company has continued to show strong growth in 2006. The company expects increasing handset demand to lead to increased demand for its gallium arsenide (GaAs) materials. He added that the increasing sophistication of handsets will further require more radio frequency components and therefore more GaAs. Dr. Nelson says its major outsourcing contracts are performing ahead of expectations. He also indicated that IQE has moved into full production of the qualifications it carried out in the second half of 2005, and he reported that new qualifications including several in the Far East continue well. He reported that the company